SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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<li>
In 1H19, Singapore’s 30 most actively traded manufacturers (non-food) produced 20% average total returns, outpacing STI gains, in a similar style to their below benchmark performance amidst declines in 2018, and above benchmark total returns amidst gains in 2017 and 2016.  
	 </li>
	<li>
1H19 total returns of the 30 stocks were more consistent than recent years, with a median 21% total return, 24 gainers &amp; six decliners, combined net institutional inflows of S$264 million; with Memtech, Jadason &amp; Hi-P Int, the strongest performing of the 30.  
	 </li>
	<li>Together the 30 stocks accounted for more than one-tenth of the day-to-day turnover of the Singapore stock market in 1H19. Manufacturers YZJ, Venture, Sing Tech Eng, AEM &amp; Sembcorp Marine were also amidst Singapore’s 30 most active stocks by turnover for 1H19.  </li>
</ul>
The global economy in the first half of 2019 was mostly characterised by downgrades to the outlook for global economic growth, weakening Purchasing Manufacturing Indices across the globe and trade tensions between the World’s two largest economies returning in early May through to end of June.

However, an outlook of lower interest rates, strength in commodity prices, combined with the fact that the 2019 decelerating growth had begun to be built into market expectations in 2018, saw the majority of Singapore’s 30 most actively traded non-food manufacturing stocks generate positive gains in 1H19.  The average market value of these 30 stocks, measured by their market capitalisation is S$1.2 billion. Hence in many cases these businesses are either multinational corporations or amongst the leaders in their product field. 

These 30 stocks include five companies that are amongst Singapore’s 50 biggest companies by market capitalisation - Singapore Tech Engineering, Yangzijiang Shipbuilding, Venture Corporation, Sembcorp Marine and Haw Par Corp.

Cyclical Nature of Manufacturing

Performance of the manufacturing stocks over the past three and half years is illustrated in the chart below. The mean and median total returns of the 30 manufacturing stocks is provided in addition to the STI total returns. Note while each stock has its own intrinsic drivers – from product cycles to market share, the combined performances of the 30 manufacturing stocks that span multiple sectors and countries can provide for a general inference to past trends and sensitivity to global growth.

When the STI generated positive gains, the manufacturing stocks outpaced those benchmark gains and when the STI generated declines, the manufacturing stocks tended to exacerbate the benchmark’s decline.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-07/Total%20Returns%20of%2030%20Most%20Active%20Manufacturing%20Stocks%20%28%25%29.JPG" alt="Total Returns of 30 Most Active Manufacturing Stocks (%)">
 </figure>
 <div class="content-caption">Total Returns of 30 Most Active Manufacturing Stocks (%)</div>
Recent years has seen some significant swings to the global growth outlook which has decelerated since Singapore was amongst the strongest growing advanced economies across the world in 2017.   

During the period covered in the above chart, the Singapore SIPMM recorded 32 months of consecutive expansion, before registering a 49.9 contraction for Singapore in May. The PMI for June is expected to be released before the market open tomorrow. SIPMM noted in recent releases that anecdotal evidence suggested that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies. Any reprieve following the G20 developments over the weekend would expected to be shown in the July PMI to be released in early August. 

Total returns of the 30 stocks in 1H19 were more consistent than recent years, with a median 21.1% total return and average total return of 20.4%. This was a contrast to the skew in 2017 average total returns due to performances from AEM Holdings, Jadason Enterprises and Hi-P International. 

In terms of net institutional inflow, Yangzijiang Shipbuilding and Singapore Tech Engineering ranked as the second and fifth highest recipients amongst all SGX stocks in the 1H19. Combined the 30 stocks saw net institutional inflows of S$264 million over 1H19. The segment also contributed over one-tenth of the day-to-day turnover value of all stocks listed on the SGX.

The 30 non-food manufacturing stocks, sort by highest turnover in  are tabled below.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			1H19 Overall

			Turnover Ranking 
			</td>
			<td>
			1H19 Overall

			Market Cap Ranking 
			</td>
			<td>
			Total Return 1H19 %
			</td>
			<td>
			Total Return 2018 %
			</td>
			<td>
			12M Historical Volatility %
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			7
			</td>
			<td>
			27
			</td>
			<td>
			27
			</td>
			<td>
			-11.4
			</td>
			<td>
			36
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			11
			</td>
			<td>
			34
			</td>
			<td>
			20
			</td>
			<td>
			-29.1
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECH ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			19
			</td>
			<td>
			14
			</td>
			<td>
			22
			</td>
			<td>
			11.8
			</td>
			<td>
			19
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			AWX
			</td>
			<td>
			27
			</td>
			<td>
			185
			</td>
			<td>
			27
			</td>
			<td>
			1.5
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			SEMBCORP MARINE
			</td>
			<td>
			S51
			</td>
			<td>
			30
			</td>
			<td>
			45
			</td>
			<td>
			-2
			</td>
			<td>
			-15.9
			</td>
			<td>
			30
			</td>
		</tr>
<tr>
<td>
			HI-P INTERNATIONAL
			</td>
			<td>
			H17
			</td>
			<td>
			32
			</td>
			<td>
			90
			</td>
			<td>
			62
			</td>
			<td>
			-50.8
			</td>
			<td>
			66
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS HOLDINGS
			</td>
			<td>
			BN2
			</td>
			<td>
			56
			</td>
			<td>
			176
			</td>
			<td>
			4
			</td>
			<td>
			-22.8
			</td>
			<td>
			38
			</td>
		</tr>
<tr>
<td>
			CREATIVE TECHNOLOGY
			</td>
			<td>
			C76
			</td>
			<td>
			71
			</td>
			<td>
			182
			</td>
			<td>
			-2
			</td>
			<td>
			254.2
			</td>
			<td>
			58
			</td>
		</tr>
<tr>
<td>
			SUNPOWER GROUP
			</td>
			<td>
			5GD
			</td>
			<td>
			72
			</td>
			<td>
			158
			</td>
			<td>
			50
			</td>
			<td>
			-27.6
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			FRENCKEN GROUP
			</td>
			<td>
			E28
			</td>
			<td>
			86
			</td>
			<td>
			186
			</td>
			<td>
			61
			</td>
			<td>
			-18.9
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			HAW PAR CORP
			</td>
			<td>
			H02
			</td>
			<td>
			92
			</td>
			<td>
			46
			</td>
			<td>
			26
			</td>
			<td>
			7.9
			</td>
			<td>
			18
			</td>
		</tr>
<tr>
<td>
			SUNNINGDALE TECH
			</td>
			<td>
			BHQ
			</td>
			<td>
			106
			</td>
			<td>
			191
			</td>
			<td>
			-1
			</td>
			<td>
			-21.9
			</td>
			<td>
			30
			</td>
		</tr>
<tr>
<td>
			FU YU CORP
			</td>
			<td>
			F13
			</td>
			<td>
			117
			</td>
			<td>
			231
			</td>
			<td>
			13
			</td>
			<td>
			10.1
			</td>
			<td>
			28
			</td>
		</tr>
<tr>
<td>
			MEMTECH INTERNATIONAL
			</td>
			<td>
			BOL
			</td>
			<td>
			123
			</td>
			<td>
			211
			</td>
			<td>
			77
			</td>
			<td>
			-23.5
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			SARINE TECHNOLOGIES
			</td>
			<td>
			U77
			</td>
			<td>
			133
			</td>
			<td>
			260
			</td>
			<td>
			-29
			</td>
			<td>
			-52.0
			</td>
			<td>
			49
			</td>
		</tr>
<tr>
<td>
			RIVERSTONE HOLDINGS
			</td>
			<td>
			AP4
			</td>
			<td>
			142
			</td>
			<td>
			123
			</td>
			<td>
			-13
			</td>
			<td>
			7.9
			</td>
			<td>
			23
			</td>
		</tr>
<tr>
<td>
			INNOTEK
			</td>
			<td>
			M14
			</td>
			<td>
			161
			</td>
			<td>
			251
			</td>
			<td>
			29
			</td>
			<td>
			18.3
			</td>
			<td>
			40
			</td>
		</tr>
<tr>
<td>
			MANUFACTURING INTEGRATION
			</td>
			<td>
			M11
			</td>
			<td>
			167
			</td>
			<td>
			357
			</td>
			<td>
			19
			</td>
			<td>
			18.1
			</td>
			<td>
			67
			</td>
		</tr>
<tr>
<td>
			CHUAN HUP HOLDINGS
			</td>
			<td>
			C33
			</td>
			<td>
			173
			</td>
			<td>
			192
			</td>
			<td>
			30
			</td>
			<td>
			-3.7
			</td>
			<td>
			42
			</td>
		</tr>
<tr>
<td>
			JEP HOLDINGS
			</td>
			<td>
			1J4
			</td>
			<td>
			174
			</td>
			<td>
			329
			</td>
			<td>
			10
			</td>
			<td>
			-3.6
			</td>
			<td>
			54
			</td>
		</tr>
<tr>
<td>
			HANWELL HOLDINGS
			</td>
			<td>
			DM0
			</td>
			<td>
			193
			</td>
			<td>
			255
			</td>
			<td>
			45
			</td>
			<td>
			-43.6
			</td>
			<td>
			40
			</td>
		</tr>
<tr>
<td>
			MIYOSHI
			</td>
			<td>
			M03
			</td>
			<td>
			195
			</td>
			<td>
			437
			</td>
			<td>
			10
			</td>
			<td>
			-39.6
			</td>
			<td>
			60
			</td>
		</tr>
<tr>
<td>
			AA GROUP HOLDINGS
			</td>
			<td>
			5GZ
			</td>
			<td>
			196
			</td>
			<td>
			485
			</td>
			<td>
			-47
			</td>
			<td>
			-51.3
			</td>
			<td>
			127
			</td>
		</tr>
<tr>
<td>
			AVARGA
			</td>
			<td>
			U09
			</td>
			<td>
			199
			</td>
			<td>
			213
			</td>
			<td>
			23
			</td>
			<td>
			-23.4
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			HALCYON AGRI CORP
			</td>
			<td>
			5VJ
			</td>
			<td>
			207
			</td>
			<td>
			118
			</td>
			<td>
			22
			</td>
			<td>
			-29.8
			</td>
			<td>
			41
			</td>
		</tr>
<tr>
<td>
			JADASON ENTERPRISES
			</td>
			<td>
			J03
			</td>
			<td>
			222
			</td>
			<td>
			450
			</td>
			<td>
			75
			</td>
			<td>
			-73.7
			</td>
			<td>
			137
			</td>
		</tr>
<tr>
<td>
			IX BIOPHARMA
			</td>
			<td>
			42C
			</td>
			<td>
			228
			</td>
			<td>
			225
			</td>
			<td>
			43
			</td>
			<td>
			-15.2
			</td>
			<td>
			66
			</td>
		</tr>
<tr>
<td>
			ELEC &amp; ELTEK INT CO
			</td>
			<td>
			E16
			</td>
			<td>
			229
			</td>
			<td>
			170
			</td>
			<td>
			8
			</td>
			<td>
			-11.7
			</td>
			<td>
			34
			</td>
		</tr>
<tr>
<td>
			NAM LEE PRESSED METAL IND
			</td>
			<td>
			G0I
			</td>
			<td>
			232
			</td>
			<td>
			282
			</td>
			<td>
			5
			</td>
			<td>
			1.1
			</td>
			<td>
			25
			</td>
		</tr>
<tr>
<td>
			MICRO-MECHANICS HOLDINGS
			</td>
			<td>
			5DD
			</td>
			<td>
			242
			</td>
			<td>
			200
			</td>
			<td>
			-4
			</td>
			<td>
			-16.2
			</td>
			<td>
			21
			</td>
		</tr>
</tbody></table>
Source: SGX StockFacts, Bloomberg (Data as of 30 June 2019) . Note overall turnover ranking is based on highest 1H19 average daily traded turnover for currently listed stocks.
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In 1H19, Singapore’s 30 most actively traded manufacturers (non-food) produced 20% average total returns, outpacing STI gains, in a similar style to their below benchmark performance amidst declines in 2018, and above benchmark total returns amidst gains in 2017 and 2016.   
	 
	
1H19 total returns of the 30 stocks were more consistent than recent years, with a median 21% total return, 24 gainers &amp; six decliners, combined net institutional inflows of S$264 million; with Memtech, Jadason &amp; Hi-P Int, the strongest performing of the 30.   
	 
	Together the 30 stocks accounted for more than one-tenth of the day-to-day turnover of the Singapore stock market in 1H19. Manufacturers YZJ, Venture, Sing Tech Eng, AEM &amp; Sembcorp Marine were also amidst Singapore’s 30 most active stocks by turnover for 1H19.  

The global economy in the first half of 2019 was mostly characterised by downgrades to the outlook for global economic growth, weakening Purchasing Manufacturing Indices across the globe and trade tensions between the World’s two largest economies returning in early May through to end of June.

However, an outlook of lower interest rates, strength in commodity prices, combined with the fact that the 2019 decelerating growth had begun to be built into market expectations in 2018, saw the majority of Singapore’s 30 most actively traded non-food manufacturing stocks generate positive gains in 1H19.  The average market value of these 30 stocks, measured by their market capitalisation is S$1.2 billion. Hence in many cases these businesses are either multinational corporations or amongst the leaders in their product field. 

These 30 stocks include five companies that are amongst Singapore’s 50 biggest companies by market capitalisation - Singapore Tech Engineering, Yangzijiang Shipbuilding, Venture Corporation, Sembcorp Marine and Haw Par Corp.

Cyclical Nature of Manufacturing

Performance of the manufacturing stocks over the past three and half years is illustrated in the chart below. The mean and median total returns of the 30 manufacturing stocks is provided in addition to the STI total returns. Note while each stock has its own intrinsic drivers – from product cycles to market share, the combined performances of the 30 manufacturing stocks that span multiple sectors and countries can provide for a general inference to past trends and sensitivity to global growth.

When the STI generated positive gains, the manufacturing stocks outpaced those benchmark gains and when the STI generated declines, the manufacturing stocks tended to exacerbate the benchmark’s decline.

      
    
    Total Returns of 30 Most Active Manufacturing Stocks (%)
Recent years has seen some significant swings to the global growth outlook which has decelerated since Singapore was amongst the strongest growing advanced economies across the world in 2017.   

During the period covered in the above chart, the Singapore SIPMM recorded 32 months of consecutive expansion, before registering a 49.9 contraction for Singapore in May. The PMI for June is expected to be released before the market open tomorrow. SIPMM noted in recent releases that anecdotal evidence suggested that manufacturers are increasingly concerned about the escalation of trade tensions between the world’s two largest economies. Any reprieve following the G20 developments over the weekend would expected to be shown in the July PMI to be released in early August. 

Total returns of the 30 stocks in 1H19 were more consistent than recent years, with a median 21.1% total return and average total return of 20.4%. This was a contrast to the skew in 2017 average total returns due to performances from AEM Holdings, Jadason Enterprises and Hi-P International. 

In terms of net institutional inflow, Yangzijiang Shipbuilding and Singapore Tech Engineering ranked as the second and fifth highest recipients amongst all SGX stocks in the 1H19. Combined the 30 stocks saw net institutional inflows of S$264 million over 1H19. The segment also contributed over one-tenth of the day-to-day turnover value of all stocks listed on the SGX.

The 30 non-food manufacturing stocks, sort by highest turnover in  are tabled below.




			Name
			
			
			SGX Code
			
			
			1H19 Overall

			Turnover Ranking 
			
			
			1H19 Overall

			Market Cap Ranking 
			
			
			Total Return 1H19 %
			
			
			Total Return 2018 %
			
			
			12M Historical Volatility %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			7
			
			
			27
			
			
			27
			
			
			-11.4
			
			
			36
			
		


			VENTURE CORP
			
			
			V03
			
			
			11
			
			
			34
			
			
			20
			
			
			-29.1
			
			
			41
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			19
			
			
			14
			
			
			22
			
			
			11.8
			
			
			19
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			27
			
			
			185
			
			
			27
			
			
			1.5
			
			
			67
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			30
			
			
			45
			
			
			-2
			
			
			-15.9
			
			
			30
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			32
			
			
			90
			
			
			62
			
			
			-50.8
			
			
			66
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			56
			
			
			176
			
			
			4
			
			
			-22.8
			
			
			38
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			71
			
			
			182
			
			
			-2
			
			
			254.2
			
			
			58
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			72
			
			
			158
			
			
			50
			
			
			-27.6
			
			
			67
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			86
			
			
			186
			
			
			61
			
			
			-18.9
			
			
			49
			
		


			HAW PAR CORP
			
			
			H02
			
			
			92
			
			
			46
			
			
			26
			
			
			7.9
			
			
			18
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			106
			
			
			191
			
			
			-1
			
			
			-21.9
			
			
			30
			
		


			FU YU CORP
			
			
			F13
			
			
			117
			
			
			231
			
			
			13
			
			
			10.1
			
			
			28
			
		


			MEMTECH INTERNATIONAL
			
			
			BOL
			
			
			123
			
			
			211
			
			
			77
			
			
			-23.5
			
			
			49
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			133
			
			
			260
			
			
			-29
			
			
			-52.0
			
			
			49
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			142
			
			
			123
			
			
			-13
			
			
			7.9
			
			
			23
			
		


			INNOTEK
			
			
			M14
			
			
			161
			
			
			251
			
			
			29
			
			
			18.3
			
			
			40
			
		


			MANUFACTURING INTEGRATION
			
			
			M11
			
			
			167
			
			
			357
			
			
			19
			
			
			18.1
			
			
			67
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			173
			
			
			192
			
			
			30
			
			
			-3.7
			
			
			42
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			174
			
			
			329
			
			
			10
			
			
			-3.6
			
			
			54
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			193
			
			
			255
			
			
			45
			
			
			-43.6
			
			
			40
			
		


			MIYOSHI
			
			
			M03
			
			
			195
			
			
			437
			
			
			10
			
			
			-39.6
			
			
			60
			
		


			AA GROUP HOLDINGS
			
			
			5GZ
			
			
			196
			
			
			485
			
			
			-47
			
			
			-51.3
			
			
			127
			
		


			AVARGA
			
			
			U09
			
			
			199
			
			
			213
			
			
			23
			
			
			-23.4
			
			
			41
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			207
			
			
			118
			
			
			22
			
			
			-29.8
			
			
			41
			
		


			JADASON ENTERPRISES
			
			
			J03
			
			
			222
			
			
			450
			
			
			75
			
			
			-73.7
			
			
			137
			
		


			IX BIOPHARMA
			
			
			42C
			
			
			228
			
			
			225
			
			
			43
			
			
			-15.2
			
			
			66
			
		


			ELEC &amp; ELTEK INT CO
			
			
			E16
			
			
			229
			
			
			170
			
			
			8
			
			
			-11.7
			
			
			34
			
		


			NAM LEE PRESSED METAL IND
			
			
			G0I
			
			
			232
			
			
			282
			
			
			5
			
			
			1.1
			
			
			25
			
		


			MICRO-MECHANICS HOLDINGS
			
			
			5DD
			
			
			242
			
			
			200
			
			
			-4
			
			
			-16.2
			
			
			21
			
		

Source: SGX StockFacts, Bloomberg (Data as of 30 June 2019) . Note overall turnover ranking is based on highest 1H19 average daily traded turnover for currently listed stocks.



Manufacturing Stocks Outpaced Benchmarks with 20% Gains in 1H19

Equity Bottom-Up

Established in 2000, AEM Holdings is one of Singapore’s most established global provider of equipment systems solutions and manufacturing services, with a global market presence spanning Asia, Europe and the United States. It operates through three business segments: Customised Automated Test Solutions, Test and Measurement Solutions, and Micro Electro Mechanical Systems (MEMS) Test Solutions.

Established in 2000, AEM Holdings is one of Singapore’s most established global provider of equipment systems solutions and manufacturing services, with a global market presence spanning Asia, Europe and the United States. It operates through three business segments: Customised Automated Test Solutions, Test and Measurement Solutions, and Micro Electro Mechanical Systems (MEMS) Test Solutions.

10 in 10 with AEM Holdings - Powering 5G Manufacturing





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

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<ul>
<li>
In May 2019, 24 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$123 million. This was up from S$36 million in April 2019 and down from S$135 million in May 2018. 
	 </li>
	<li>
13 stocks commenced new buyback mandates in the month of May 2019: DBS, OCBC, Sing Tech Engineering, China Sunsine Chemical Holdings, AEM Holdings, Japfa, Olam Int, Raffles Medical, Koufu, Jumbo, Cheung Woh Tech, Aspen (Group) Holdings &amp; Trek 2000 Int. 
	 </li>
	<li>The May 2019 buyback consideration was led by DBS &amp; OCBC, which contributed more than three-quarters of the total consideration. The previous year’s mandate saw DBS buy back 0.478% of its shares and OCBC buy back 0.378% of its shares.</li>
</ul>
Total share buyback consideration for the month of May 2019 totaled S$123.1 million. There were 24 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 39.1 million shares or units.

The S$123.1 million in buyback consideration was more than triple the buyback consideration of S$35.5 million filed in April 2019 (click <a href="https://www2.sgx.com/research-education/market-updates/20190503-april-buyback-consideration-led-ocbc-keppel-reit-hong">here</a> for more). The S$123.1 million in consideration was also the highest monthly tally since a total consideration of S$245.4 million was recorded in August 2018, when DBS Group Holdings (“DBS”) contributed S$150.8 million to that month’s tally.

Last month, the Straits Times Index (“STI”) declined 8.3%, with dividend distributions trimming the decline to a 7.0% decline in total return. The preceding month of April had seen the STI generate a total return of 6.1%. 

The three banks, DBS, Oversea-Chinese Banking Corporation (“OCBC”) and United Overseas Bank led the declines, whilst Real Estate Investment Trusts generated more defensive returns with the sector generating a total return of 0.4%. Telecommunication stocks also generated defensive returns with Singapore Telecommunications, NetLink NBN Trust and StarHub all gaining, averaging 1.3% total returns. Both these two sectors, which were comparatively defensive in May, were subject the highest net institutional inflows for the month.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/share%20buyback_1.JPG" alt="Share Buyback">
 </figure>
 <div class="content-caption">Share Buyback</div>
More than a Dozen New Mandates Commenced in May 2019 

The table below summarises the buyback considerations in May 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The 13 stocks that commenced new mandates are highlighted in Bold.

<table class="table table-striped"><tbody>
<tr>
<td>
			Company /Trust
			</td>
			<td>
			Max of Number of Shares/units Authorised for Purchase in Mandate
			</td>
			<td>
			Total Number of Shares/units Purchased in May 2019
			</td>
			<td>
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in May 2019
			</td>
			<td>
			Cumulative Number of Shares/units purchased in Mandate to date*
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HOLDINGS 
			</td>
			<td>
			51,165,438
			</td>
			<td>
			2,600,000
			</td>
			<td>
			$65,680,143
			</td>
			<td>
			2,600,000
			</td>
		</tr>
<tr>
<td>
			OVERSEA-CHINESE BANKING CORPORATION 
			</td>
			<td>
			212,257,935
			</td>
			<td>
			2,780,000
			</td>
			<td>
			$30,643,985
			</td>
			<td>
			2,780,000
			</td>
		</tr>
<tr>
<td>
			BEST WORLD INTERNATIONAL
			</td>
			<td>
			55,032,011
			</td>
			<td>
			4,875,000
			</td>
			<td>
			$7,777,699
			</td>
			<td>
			6,220,000
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			170,210,715
			</td>
			<td>
			4,200,000
			</td>
			<td>
			$5,142,030
			</td>
			<td>
			6,390,700
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECHNOLOGIES ENGINEERING 
			</td>
			<td>
			62,432,801
			</td>
			<td>
			1,100,000
			</td>
			<td>
			$4,323,524
			</td>
			<td>
			1,100,000
			</td>
		</tr>
<tr>
<td>
			CHINA SUNSINE CHEMICAL HOLDINGS 
			</td>
			<td>
			49,131,170
			</td>
			<td>
			2,579,000
			</td>
			<td>
			$2,974,024
			</td>
			<td>
			2,579,000
			</td>
		</tr>
<tr>
<td>
			GLOBAL INVESTMENTS
			</td>
			<td>
			168,741,864
			</td>
			<td>
			10,748,700
			</td>
			<td>
			$1,415,269
			</td>
			<td>
			12,278,700
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TELECOMMUNICATIONS
			</td>
			<td>
			816,457,915
			</td>
			<td>
			437,333
			</td>
			<td>
			$1,362,963
			</td>
			<td>
			808,005
			</td>
		</tr>
<tr>
<td>
			KIMLY
			</td>
			<td>
			115,489,763
			</td>
			<td>
			3,600,000
			</td>
			<td>
			$867,056
			</td>
			<td>
			5,650,700
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS 
			</td>
			<td>
			27,096,300
			</td>
			<td>
			900,000
			</td>
			<td>
			$837,144
			</td>
			<td>
			900,000
			</td>
		</tr>
<tr>
<td>
			TUAN SING HOLDINGS
			</td>
			<td>
			118,620,496
			</td>
			<td>
			2,015,000
			</td>
			<td>
			$747,254
			</td>
			<td>
			2,315,000
			</td>
		</tr>
<tr>
<td>
			JAPFA 
			</td>
			<td>
			186,466,879
			</td>
			<td>
			855,500
			</td>
			<td>
			$459,859
			</td>
			<td>
			855,500
			</td>
		</tr>
<tr>
<td>
			OLAM INTERNATIONAL 
			</td>
			<td>
			159,528,594
			</td>
			<td>
			110,600
			</td>
			<td>
			$195,946
			</td>
			<td>
			110,600
			</td>
		</tr>
<tr>
<td>
			THE STRAITS TRADING COMPANY
			</td>
			<td>
			40,767,817
			</td>
			<td>
			60,600
			</td>
			<td>
			$132,388
			</td>
			<td>
			75,600
			</td>
		</tr>
<tr>
<td>
			NORDIC GROUP
			</td>
			<td>
			39,251,910
			</td>
			<td>
			477,100
			</td>
			<td>
			$129,556
			</td>
			<td>
			605,800
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP 
			</td>
			<td>
			179,835,340
			</td>
			<td>
			100,000
			</td>
			<td>
			$101,151
			</td>
			<td>
			100,000
			</td>
		</tr>
<tr>
<td>
			GRP
			</td>
			<td>
			19,370,161
			</td>
			<td>
			633,500
			</td>
			<td>
			$99,814
			</td>
			<td>
			944,200
			</td>
		</tr>
<tr>
<td>
			DUTY FREE INTERNATIONAL
			</td>
			<td>
			121,345,399
			</td>
			<td>
			420,000
			</td>
			<td>
			$80,430
			</td>
			<td>
			7,953,600
			</td>
		</tr>
<tr>
<td>
			KOUFU GROUP 
			</td>
			<td>
			55,516,300
			</td>
			<td>
			100,000
			</td>
			<td>
			$69,604
			</td>
			<td>
			100,000
			</td>
		</tr>
<tr>
<td>
			JUMBO GROUP 
			</td>
			<td>
			64,109,130
			</td>
			<td>
			92,300
			</td>
			<td>
			$34,702
			</td>
			<td>
			92,300
			</td>
		</tr>
<tr>
<td>
			CHEUNG WOH TECHNOLOGIES 
			</td>
			<td>
			30,221,180
			</td>
			<td>
			278,900
			</td>
			<td>
			$34,341
			</td>
			<td>
			278,900
			</td>
		</tr>
<tr>
<td>
			SINGAPORE SHIPPING CORPORATION
			</td>
			<td>
			43,701,979
			</td>
			<td>
			69,400
			</td>
			<td>
			$19,549
			</td>
			<td>
			11,821,800
			</td>
		</tr>
<tr>
<td>
			ASPEN (GROUP) HOLDINGS 
			</td>
			<td>
			96,353,530
			</td>
			<td>
			50,000
			</td>
			<td>
			$7,614
			</td>
			<td>
			50,000
			</td>
		</tr>
<tr>
<td>
			TREK 2000 INTERNATIONAL 
			</td>
			<td>
			32,002,002
			</td>
			<td>
			5,000
			</td>
			<td>
			$548
			</td>
			<td>
			5,000
			</td>
		</tr>
<tr>
<td>
			Total
			</td>
			<td> </td>
			<td>
			39,087,933
			</td>
			<td>
			$123,136,594
			</td>
			<td> </td>
		</tr>
</tbody></table>
*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 31 May 2019)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click <a href="http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements">here</a>). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.
</body></html>





In May 2019, 24 primary-listed stocks on SGX repurchased close to 40 million shares with a total consideration of S$123 million. This was up from S$36 million in April 2019 and down from S$135 million in May 2018. 
	 
	
13 stocks commenced new buyback mandates in the month of May 2019: DBS, OCBC, Sing Tech Engineering, China Sunsine Chemical Holdings, AEM Holdings, Japfa, Olam Int, Raffles Medical, Koufu, Jumbo, Cheung Woh Tech, Aspen (Group) Holdings &amp; Trek 2000 Int. 
	 
	The May 2019 buyback consideration was led by DBS &amp; OCBC, which contributed more than three-quarters of the total consideration. The previous year’s mandate saw DBS buy back 0.478% of its shares and OCBC buy back 0.378% of its shares.

Total share buyback consideration for the month of May 2019 totaled S$123.1 million. There were 24 SGX-listed stocks that reported buybacks of their SGX-listings over the month, buying back a total of 39.1 million shares or units.

The S$123.1 million in buyback consideration was more than triple the buyback consideration of S$35.5 million filed in April 2019 (click here for more). The S$123.1 million in consideration was also the highest monthly tally since a total consideration of S$245.4 million was recorded in August 2018, when DBS Group Holdings (“DBS”) contributed S$150.8 million to that month’s tally.

Last month, the Straits Times Index (“STI”) declined 8.3%, with dividend distributions trimming the decline to a 7.0% decline in total return. The preceding month of April had seen the STI generate a total return of 6.1%. 

The three banks, DBS, Oversea-Chinese Banking Corporation (“OCBC”) and United Overseas Bank led the declines, whilst Real Estate Investment Trusts generated more defensive returns with the sector generating a total return of 0.4%. Telecommunication stocks also generated defensive returns with Singapore Telecommunications, NetLink NBN Trust and StarHub all gaining, averaging 1.3% total returns. Both these two sectors, which were comparatively defensive in May, were subject the highest net institutional inflows for the month.

      
    
    Share Buyback
More than a Dozen New Mandates Commenced in May 2019 

The table below summarises the buyback considerations in May 2019. The table is sorted by the value of the total consideration amount for the month, which combines the amount of shares or units purchased and the purchasing price of the transactions. The 13 stocks that commenced new mandates are highlighted in Bold.




			Company /Trust
			
			
			Max of Number of Shares/units Authorised for Purchase in Mandate
			
			
			Total Number of Shares/units Purchased in May 2019
			
			
			Total Buyback Consideration  (including stamp duties, clearing changes etc.) paid or payable for the shares in May 2019
			
			
			Cumulative Number of Shares/units purchased in Mandate to date*
			
		


			DBS GROUP HOLDINGS 
			
			
			51,165,438
			
			
			2,600,000
			
			
			$65,680,143
			
			
			2,600,000
			
		


			OVERSEA-CHINESE BANKING CORPORATION 
			
			
			212,257,935
			
			
			2,780,000
			
			
			$30,643,985
			
			
			2,780,000
			
		


			BEST WORLD INTERNATIONAL
			
			
			55,032,011
			
			
			4,875,000
			
			
			$7,777,699
			
			
			6,220,000
			
		


			KEPPEL REIT
			
			
			170,210,715
			
			
			4,200,000
			
			
			$5,142,030
			
			
			6,390,700
			
		


			SINGAPORE TECHNOLOGIES ENGINEERING 
			
			
			62,432,801
			
			
			1,100,000
			
			
			$4,323,524
			
			
			1,100,000
			
		


			CHINA SUNSINE CHEMICAL HOLDINGS 
			
			
			49,131,170
			
			
			2,579,000
			
			
			$2,974,024
			
			
			2,579,000
			
		


			GLOBAL INVESTMENTS
			
			
			168,741,864
			
			
			10,748,700
			
			
			$1,415,269
			
			
			12,278,700
			
		


			SINGAPORE TELECOMMUNICATIONS
			
			
			816,457,915
			
			
			437,333
			
			
			$1,362,963
			
			
			808,005
			
		


			KIMLY
			
			
			115,489,763
			
			
			3,600,000
			
			
			$867,056
			
			
			5,650,700
			
		


			AEM HOLDINGS 
			
			
			27,096,300
			
			
			900,000
			
			
			$837,144
			
			
			900,000
			
		


			TUAN SING HOLDINGS
			
			
			118,620,496
			
			
			2,015,000
			
			
			$747,254
			
			
			2,315,000
			
		


			JAPFA 
			
			
			186,466,879
			
			
			855,500
			
			
			$459,859
			
			
			855,500
			
		


			OLAM INTERNATIONAL 
			
			
			159,528,594
			
			
			110,600
			
			
			$195,946
			
			
			110,600
			
		


			THE STRAITS TRADING COMPANY
			
			
			40,767,817
			
			
			60,600
			
			
			$132,388
			
			
			75,600
			
		


			NORDIC GROUP
			
			
			39,251,910
			
			
			477,100
			
			
			$129,556
			
			
			605,800
			
		


			RAFFLES MEDICAL GROUP 
			
			
			179,835,340
			
			
			100,000
			
			
			$101,151
			
			
			100,000
			
		


			GRP
			
			
			19,370,161
			
			
			633,500
			
			
			$99,814
			
			
			944,200
			
		


			DUTY FREE INTERNATIONAL
			
			
			121,345,399
			
			
			420,000
			
			
			$80,430
			
			
			7,953,600
			
		


			KOUFU GROUP 
			
			
			55,516,300
			
			
			100,000
			
			
			$69,604
			
			
			100,000
			
		


			JUMBO GROUP 
			
			
			64,109,130
			
			
			92,300
			
			
			$34,702
			
			
			92,300
			
		


			CHEUNG WOH TECHNOLOGIES 
			
			
			30,221,180
			
			
			278,900
			
			
			$34,341
			
			
			278,900
			
		


			SINGAPORE SHIPPING CORPORATION
			
			
			43,701,979
			
			
			69,400
			
			
			$19,549
			
			
			11,821,800
			
		


			ASPEN (GROUP) HOLDINGS 
			
			
			96,353,530
			
			
			50,000
			
			
			$7,614
			
			
			50,000
			
		


			TREK 2000 INTERNATIONAL 
			
			
			32,002,002
			
			
			5,000
			
			
			$548
			
			
			5,000
			
		


			Total
			
			 
			
			39,087,933
			
			
			$123,136,594
			
			 
		

*Percentage of company’s issued shares excluding treasury shares as at the date of the share buyback resolutions.   
Source: SGX May Gateway (Data as of 31 May 2019)

Share buyback transactions involve share issuers repurchasing some of their outstanding shares from shareholders through the open market. Once the shares are bought back, they will be converted into treasury shares, which means they are no longer categorised as shares outstanding. Other motivations for share buybacks include companies moving to align stock valuations with balance sheet objectives.

The date of the relevant share buyback mandate is also provided in the table above, in addition to the amount of shares authorised to be bought back under the mandate. The total number of shares purchased under the mandate and the percentage of the companies that issued shares that have been repurchased under the mandate are also provided.

Share buyback information can be found on the company disclosure page on the SGX website, using the Announcement category and sub-category of Share Buy Back-On Market (click here). As best practice, companies should refrain from buying back their shares during the two weeks immediately before its quarterly financial statements and one month immediately before the full-year financial statements.



May Share Buyback Consideration at S$123M, a 9 Month High

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million, the second-highest inflow after REITs (+S$242.6 million). 
	 </li>
	<li>
The 20 largest IT stocks on SGX have a combined market cap of nearly S$16 billion, and averaged a total return of +21.7% in the 2019 YTD. They also averaged a PE ratio of 13.6x, ROE of 13.8% and dividend indicated yield of 3.5%. 
	 </li>
	<li>Among the 20, the five best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%). The five have averaged a YTD total return of +45.4%, bringing their 1Y and 3Y total returns to +11.9% and +194.3% respectively.</li>
</ul>
Sector Draws Institutional Interest 

In the first quarter of 2019, Information Technology (IT) was the best-performing sector on SGX with a total return of 28.6%, reversing the -16.3% total return in calendar year 2018.

IT was also among the top net buy sectors for the January-March quarter, garnering total institutional inflow of S$100.5 million, according to SGX data. This comprised S$33.1 million, S$45.7 million, and S$21.7 million for the months of January, February and March 2019 respectively. IT received the second-highest inflows in the quarter after REITs, which garnered S$242.6 million.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-04/IT%20Sector%20Insti%20inflows.PNG" alt="Institutional Inflows">
 </figure>
 <div class="content-caption">Institutional Inflows</div>
March Electronics Manufacturing Activity 

The <a href="https://sipmm.io/singapore-manufacturing-activity-picks-up-march-but-electronics-decline/">Purchasing Managers' Index (PMI)</a> for Singapore's key electronics sector edged higher in March to 49.8 from 49.5 in February, but remains in contraction – below the expansionary level of 50 – for the fifth consecutive month.

However, the overall manufacturing PMI – a key barometer of economic activity in the broader manufacturing industry – stood at 50.8 in March, up 0.4 percentage point from February. March’s reading marks the index’s 31st straight month of expansion.

The <a href="https://sipmm.edu.sg/">Singapore Institute of Purchasing and Materials Management</a> (SIPMM), which compiles the index by surveying around 150 industrial companies, attributed the stronger performance in March to faster growth in new orders, factory output and inventory levels.

Best-Performing IT Stocks in YTD

The 20 largest capitalised IT stocks on SGX have a combined market cap of nearly S$16 billion. In the 2019 year-to-date, they have averaged a total return of +21.7%, bringing their one-year and three-year total returns to -4.1% and +171.5% respectively.

These 20 largest IT stocks also averaged a price-earnings ratio of 13.6x, a Return on Equity (ROE) of 13.8% and a dividend indicated yield of 3.5%.

Among the 20, the five best performers in the YTD were: Hi-P International (+65.0%), TPV Technology (+46.2%), Innotek Ltd (+41.0%), Venture Corp (+37.9%), and CSE Global (+36.8%).

These five stocks – which are focused on the businesses of consumer electronics, electronics components, office automation, industrial machinery and electronics manufacturing services – have averaged a YTD total return of +45.4%, bringing their one-year and three-year total returns to +11.9% and +194.3% respectively.

The table below details the 20 largest IT stocks on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			P/E (x)
			</td>
			<td>
			Div Ind Yield (%)
			</td>
			<td>
			ROE (%)
			</td>
		</tr>
<tr>
<td>
			HI-P INTL
			</td>
			<td>
			H17
			</td>
			<td>
			1,170
			</td>
			<td>
			65.0
			</td>
			<td>
			-27.3
			</td>
			<td>
			343.2
			</td>
			<td>
			11.7
			</td>
			<td>
			3.4
			</td>
			<td>
			18.5
			</td>
		</tr>
<tr>
<td>
			TPV TECHNOLOGY
			</td>
			<td>
			T18
			</td>
			<td>
			669
			</td>
			<td>
			46.2
			</td>
			<td>
			45.5
			</td>
			<td>
			70.2
			</td>
			<td>
			23.0
			</td>
			<td>
			0.6
			</td>
			<td>
			1.4
			</td>
		</tr>
<tr>
<td>
			INNOTEK LTD
			</td>
			<td>
			M14
			</td>
			<td>
			134
			</td>
			<td>
			41.0
			</td>
			<td>
			41.2
			</td>
			<td>
			354.0
			</td>
			<td>
			6.6
			</td>
			<td>
			1.7
			</td>
			<td>
			14.3
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			5,542
			</td>
			<td>
			37.9
			</td>
			<td>
			-30.4
			</td>
			<td>
			164.7
			</td>
			<td>
			13.8
			</td>
			<td>
			3.6
			</td>
			<td>
			16.4
			</td>
		</tr>
<tr>
<td>
			CSE GLOBAL
			</td>
			<td>
			544
			</td>
			<td>
			264
			</td>
			<td>
			36.8
			</td>
			<td>
			30.5
			</td>
			<td>
			39.4
			</td>
			<td>
			13.3
			</td>
			<td>
			5.3
			</td>
			<td>
			11.7
			</td>
		</tr>
<tr>
<td>
			CHUAN HUP
			</td>
			<td>
			C33
			</td>
			<td>
			343
			</td>
			<td>
			34.5
			</td>
			<td>
			27.4
			</td>
			<td>
			55.5
			</td>
			<td>
			28.5
			</td>
			<td>
			2.7
			</td>
			<td>
			3.1
			</td>
		</tr>
<tr>
<td>
			AEM HOLDINGS
			</td>
			<td>
			AWX
			</td>
			<td>
			293
			</td>
			<td>
			30.9
			</td>
			<td>
			-36.4
			</td>
			<td>
			1414.9
			</td>
			<td>
			8.8
			</td>
			<td>
			3.2
			</td>
			<td>
			45.5
			</td>
		</tr>
<tr>
<td>
			UMS HOLDINGS
			</td>
			<td>
			558
			</td>
			<td>
			386
			</td>
			<td>
			26.3
			</td>
			<td>
			-33.9
			</td>
			<td>
			75.8
			</td>
			<td>
			9.0
			</td>
			<td>
			6.3
			</td>
			<td>
			19.4
			</td>
		</tr>
<tr>
<td>
			PCI LTD
			</td>
			<td>
			P19
			</td>
			<td>
			263
			</td>
			<td>
			24.5
			</td>
			<td>
			69.1
			</td>
			<td>
			271.3
			</td>
			<td>
			12.1
			</td>
			<td>
			2.3
			</td>
			<td>
			16.9
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			5CP
			</td>
			<td>
			1,349
			</td>
			<td>
			23.8
			</td>
			<td>
			0.1
			</td>
			<td>
			3.1
			</td>
			<td>
			21.2
			</td>
			<td>
			2.6
			</td>
			<td>
			29.1
			</td>
		</tr>
<tr>
<td>
			MEMTECH INTL
			</td>
			<td>
			BOL
			</td>
			<td>
			134
			</td>
			<td>
			22.3
			</td>
			<td>
			-34.6
			</td>
			<td>
			50.4
			</td>
			<td>
			10.4
			</td>
			<td>
			3.1
			</td>
			<td>
			7.6
			</td>
		</tr>
<tr>
<td>
			NERA TELECOM
			</td>
			<td>
			N01
			</td>
			<td>
			114
			</td>
			<td>
			16.7
			</td>
			<td>
			-10.8
			</td>
			<td>
			-15.9
			</td>
			<td>
			14.7
			</td>
			<td>
			7.9
			</td>
			<td>
			11.4
			</td>
		</tr>
<tr>
<td>
			CREATIVE TECH
			</td>
			<td>
			C76
			</td>
			<td>
			320
			</td>
			<td>
			12.1
			</td>
			<td>
			-25.7
			</td>
			<td>
			302.8
			</td>
			<td>
			19.8
			</td>
			<td>
			NA
			</td>
			<td>
			11.1
			</td>
		</tr>
<tr>
<td>
			ELEC &amp; ELTEK
			</td>
			<td>
			E16
			</td>
			<td>
			363
			</td>
			<td>
			9.5
			</td>
			<td>
			-3.8
			</td>
			<td>
			75.3
			</td>
			<td>
			11.0
			</td>
			<td>
			NA
			</td>
			<td>
			6.2
			</td>
		</tr>
<tr>
<td>
			NETLINK NBN TRUST
			</td>
			<td>
			CJLU
			</td>
			<td>
			3,254
			</td>
			<td>
			9.2
			</td>
			<td>
			10.6
			</td>
			<td>
			NA
			</td>
			<td>
			1.0*
			</td>
			<td>
			4.9
			</td>
			<td>
			2.4
			</td>
		</tr>
<tr>
<td>
			MICRO-MECHANICS
			</td>
			<td>
			5DD
			</td>
			<td>
			238
			</td>
			<td>
			4.3
			</td>
			<td>
			-9.4
			</td>
			<td>
			158.1
			</td>
			<td>
			15.1
			</td>
			<td>
			5.3
			</td>
			<td>
			27.1
			</td>
		</tr>
<tr>
<td>
			VALUETRONICS LTD
			</td>
			<td>
			BN2
			</td>
			<td>
			295
			</td>
			<td>
			3.0
			</td>
			<td>
			-25.0
			</td>
			<td>
			82.2
			</td>
			<td>
			8.5
			</td>
			<td>
			5.2
			</td>
			<td>
			18.9
			</td>
		</tr>
<tr>
<td>
			MDR LTD
			</td>
			<td>
			A27
			</td>
			<td>
			130
			</td>
			<td>
			0.0
			</td>
			<td>
			-28.7
			</td>
			<td>
			-44.1
			</td>
			<td>
			20.0
			</td>
			<td>
			1.6
			</td>
			<td>
			2.7
			</td>
		</tr>
<tr>
<td>
			SUNNINGDALE TECH
			</td>
			<td>
			BHQ
			</td>
			<td>
			254
			</td>
			<td>
			-4.2
			</td>
			<td>
			-18.5
			</td>
			<td>
			21.4
			</td>
			<td>
			8.6
			</td>
			<td>
			5.6
			</td>
			<td>
			8.0
			</td>
		</tr>
<tr>
<td>
			GP INDUSTRIES
			</td>
			<td>
			G20
			</td>
			<td>
			283
			</td>
			<td>
			-4.9
			</td>
			<td>
			-21.7
			</td>
			<td>
			7.8
			</td>
			<td>
			14.3
			</td>
			<td>
			5.1
			</td>
			<td>
			5.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			21.7
			</td>
			<td>
			-4.1
			</td>
			<td>
			171.5
			</td>
			<td>
			13.6
			</td>
			<td>
			3.5
			</td>
			<td>
			13.8
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 18 April 2019)

*Note P/B ratio used instead of P/E for NetLink as more relevant for business trusts
</body></html>





In 1Q19, IT was the best-performing sector on SGX with a total return of 28.6%, after registering a total return of -16.3% in calendar year 2018. It was also among the top net buy sectors for the quarter, garnering total institutional inflow of S$100.5 million, the second-highest inflow after REITs (+S$242.6 million).  
	 
	
The 20 largest IT stocks on SGX have a combined market cap of nearly S$16 billion, and averaged a total return of +21.7% in the 2019 YTD. They also averaged a PE ratio of 13.6x, ROE of 13.8% and dividend indicated yield of 3.5%. 
	 
	Among the 20, the five best performers in the YTD were: Hi-P (+65.0%), TPV Tech (+46.2%), Innotek (+41.0%), Venture (+37.9%), and CSE Global (+36.8%). The five have averaged a YTD total return of +45.4%, bringing their 1Y and 3Y total returns to +11.9% and +194.3% respectively.

Sector Draws Institutional Interest 

In the first quarter of 2019, Information Technology (IT) was the best-performing sector on SGX with a total return of 28.6%, reversing the -16.3% total return in calendar year 2018.

IT was also among the top net buy sectors for the January-March quarter, garnering total institutional inflow of S$100.5 million, according to SGX data. This comprised S$33.1 million, S$45.7 million, and S$21.7 million for the months of January, February and March 2019 respectively. IT received the second-highest inflows in the quarter after REITs, which garnered S$242.6 million.

      
    
    Institutional Inflows
March Electronics Manufacturing Activity 

The Purchasing Managers' Index (PMI) for Singapore's key electronics sector edged higher in March to 49.8 from 49.5 in February, but remains in contraction – below the expansionary level of 50 – for the fifth consecutive month.

However, the overall manufacturing PMI – a key barometer of economic activity in the broader manufacturing industry – stood at 50.8 in March, up 0.4 percentage point from February. March’s reading marks the index’s 31st straight month of expansion.

The Singapore Institute of Purchasing and Materials Management (SIPMM), which compiles the index by surveying around 150 industrial companies, attributed the stronger performance in March to faster growth in new orders, factory output and inventory levels.

Best-Performing IT Stocks in YTD

The 20 largest capitalised IT stocks on SGX have a combined market cap of nearly S$16 billion. In the 2019 year-to-date, they have averaged a total return of +21.7%, bringing their one-year and three-year total returns to -4.1% and +171.5% respectively.

These 20 largest IT stocks also averaged a price-earnings ratio of 13.6x, a Return on Equity (ROE) of 13.8% and a dividend indicated yield of 3.5%.

Among the 20, the five best performers in the YTD were: Hi-P International (+65.0%), TPV Technology (+46.2%), Innotek Ltd (+41.0%), Venture Corp (+37.9%), and CSE Global (+36.8%).

These five stocks – which are focused on the businesses of consumer electronics, electronics components, office automation, industrial machinery and electronics manufacturing services – have averaged a YTD total return of +45.4%, bringing their one-year and three-year total returns to +11.9% and +194.3% respectively.

The table below details the 20 largest IT stocks on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			P/E (x)
			
			
			Div Ind Yield (%)
			
			
			ROE (%)
			
		


			HI-P INTL
			
			
			H17
			
			
			1,170
			
			
			65.0
			
			
			-27.3
			
			
			343.2
			
			
			11.7
			
			
			3.4
			
			
			18.5
			
		


			TPV TECHNOLOGY
			
			
			T18
			
			
			669
			
			
			46.2
			
			
			45.5
			
			
			70.2
			
			
			23.0
			
			
			0.6
			
			
			1.4
			
		


			INNOTEK LTD
			
			
			M14
			
			
			134
			
			
			41.0
			
			
			41.2
			
			
			354.0
			
			
			6.6
			
			
			1.7
			
			
			14.3
			
		


			VENTURE CORP
			
			
			V03
			
			
			5,542
			
			
			37.9
			
			
			-30.4
			
			
			164.7
			
			
			13.8
			
			
			3.6
			
			
			16.4
			
		


			CSE GLOBAL
			
			
			544
			
			
			264
			
			
			36.8
			
			
			30.5
			
			
			39.4
			
			
			13.3
			
			
			5.3
			
			
			11.7
			
		


			CHUAN HUP
			
			
			C33
			
			
			343
			
			
			34.5
			
			
			27.4
			
			
			55.5
			
			
			28.5
			
			
			2.7
			
			
			3.1
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			293
			
			
			30.9
			
			
			-36.4
			
			
			1414.9
			
			
			8.8
			
			
			3.2
			
			
			45.5
			
		


			UMS HOLDINGS
			
			
			558
			
			
			386
			
			
			26.3
			
			
			-33.9
			
			
			75.8
			
			
			9.0
			
			
			6.3
			
			
			19.4
			
		


			PCI LTD
			
			
			P19
			
			
			263
			
			
			24.5
			
			
			69.1
			
			
			271.3
			
			
			12.1
			
			
			2.3
			
			
			16.9
			
		


			SILVERLAKE AXIS
			
			
			5CP
			
			
			1,349
			
			
			23.8
			
			
			0.1
			
			
			3.1
			
			
			21.2
			
			
			2.6
			
			
			29.1
			
		


			MEMTECH INTL
			
			
			BOL
			
			
			134
			
			
			22.3
			
			
			-34.6
			
			
			50.4
			
			
			10.4
			
			
			3.1
			
			
			7.6
			
		


			NERA TELECOM
			
			
			N01
			
			
			114
			
			
			16.7
			
			
			-10.8
			
			
			-15.9
			
			
			14.7
			
			
			7.9
			
			
			11.4
			
		


			CREATIVE TECH
			
			
			C76
			
			
			320
			
			
			12.1
			
			
			-25.7
			
			
			302.8
			
			
			19.8
			
			
			NA
			
			
			11.1
			
		


			ELEC &amp; ELTEK
			
			
			E16
			
			
			363
			
			
			9.5
			
			
			-3.8
			
			
			75.3
			
			
			11.0
			
			
			NA
			
			
			6.2
			
		


			NETLINK NBN TRUST
			
			
			CJLU
			
			
			3,254
			
			
			9.2
			
			
			10.6
			
			
			NA
			
			
			1.0*
			
			
			4.9
			
			
			2.4
			
		


			MICRO-MECHANICS
			
			
			5DD
			
			
			238
			
			
			4.3
			
			
			-9.4
			
			
			158.1
			
			
			15.1
			
			
			5.3
			
			
			27.1
			
		


			VALUETRONICS LTD
			
			
			BN2
			
			
			295
			
			
			3.0
			
			
			-25.0
			
			
			82.2
			
			
			8.5
			
			
			5.2
			
			
			18.9
			
		


			MDR LTD
			
			
			A27
			
			
			130
			
			
			0.0
			
			
			-28.7
			
			
			-44.1
			
			
			20.0
			
			
			1.6
			
			
			2.7
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			254
			
			
			-4.2
			
			
			-18.5
			
			
			21.4
			
			
			8.6
			
			
			5.6
			
			
			8.0
			
		


			GP INDUSTRIES
			
			
			G20
			
			
			283
			
			
			-4.9
			
			
			-21.7
			
			
			7.8
			
			
			14.3
			
			
			5.1
			
			
			5.4
			
		


			Average
			
			
			 
			
			
			 
			
			
			21.7
			
			
			-4.1
			
			
			171.5
			
			
			13.6
			
			
			3.5
			
			
			13.8
			
		

Source: Bloomberg &amp; StockFacts (data as of 18 April 2019)

*Note P/B ratio used instead of P/E for NetLink as more relevant for business trusts



Five Largest, Best-Performing IT Stocks Averaged 45% YTD Total Return

Singapore

AEM Holdings Limited designs and manufactures semiconductor manufacturing equipment and related tooling parts and precision machining of components for semiconductor industry.  The Company also manufactures and distributes electronics, engineering, chemical and related products. AEM provides engineering services.

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AEM (AEM SP)

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